2016 European Electric Scooter

Technology Innovation Award

2016
 BEST PRACTICES RESEARCH

Contents

Industry Challenges............................................................................................ 3

Technology Attributes and Future Business Value ................................................... 3

Conclusion ........................................................................................................ 6

Significance of Technology Innovation ........................................................................ 7

Understanding Technology Innovation ......................................................................... 7

Key Benchmarking Criteria .................................................................................. 8

Best Practice Award Analysis for Gogoro ..................................................................... 8

Decision Support Scorecard ................................................................................. 8

Technology Attributes ........................................................................................ 9

Future Business Value ........................................................................................ 9

Decision Support Matrix .................................................................................... 10

The Intersection between 360-Degree Research and Best Practices Awards .................... 11

Research Methodology ..................................................................................... 11

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best

Practices .............................................................................................................. 12

About Frost & Sullivan ........................................................................................... 13

© Frost & Sullivan 2016 2 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

Background and Company Performance

Industry Challenges

In Europe, the electric scooter (eScooter) market is anticipated to grow at a CAGR of 30%
between 2015 and 2025. An eScooter targets to solve the challenge regarding urban
commute of an end user. Increasing traffic congestion woes, coupled with environmental
concerns, is the key driver for the adoption of eScooters. These concerns are driving policy
makers and end users to increase their preference for electric scooters. Germany, France,
and Amsterdam are among the biggest markets in Europe for the adoption of eScooters.
Early adopters currently drive the sales of the eScooters in Europe, and the segment that is
equivalent to 125 CC is the most popular. For instance, in France alone, the 125 CC
equivalent eScooter market segment grew by 52% in 2015 over 2014, or about 449 units
sold in 2015 (per Frost & Sullivan independent analysis).

Frost & Sullivan notes that the key challenges that eScooters are aiming to overcome
include cost, range anxiety, and the recharging time for batteries. The cost of vehicles is
primarily driven by the battery costs, which alone account for up to 30% to 40% of the
vehicle costs - depending on the battery technology. Forerunners of lithium-ion battery
technology report to Frost & Sullivan that they anticipate the price of batteries to reduce to
half by 2020. The second challenge is range anxiety, which is primarily due to the lack of
abundant electric charging stations. However, as the policy makers increase their support
for electric vehicles, this challenge is expected to reduce over time. Finally, recharging time
is perhaps seen the biggest challenges for eScooters, as these are used for short distance
commute. Currently, the recharging time averages 1 hour and 40 minutes for eScooters to
reach 80% of the battery charge. eScooters have 100 Km range; hence the ratio of
commute time to recharge time is 1. This is quite slow compared to gasoline-powered
vehicles, which take around 2 – 5 minutes to fill the tank. Stakeholders addressing this
challenge are proposing solutions - including carrying portable battery packs that can be
removed and carried to charge comfortably at the destination. However, the hassle of
carrying the battery before charging remains a clear pain point for the end users.

Frost & Sullivan applauds how Gogoro - a smart eScooter manufacturer - uses battery
swapping technology and a disruptive business model to address today's key market
challenges, including the goal of making urban commute both affordable and convenient
for end users.

Technology Attributes and Future Business Value

Gogoro, founded in 2011 by Horace Luke (CEO) and Matt Taylor (CTO), is based out of
Taipei (Taiwan). The company started with the vision of transforming mega cities into
smart cities by providing cleaner and smarter energy to the people. The Gogoro
Smartscooters and Gogoro Energy Network are designed to create an ecosystem with
better connectivity, easy access to energy, and an enjoyable urban lifestyle. Gogoro has

© Frost & Sullivan 2016 3 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

announced that it plans to start its operations in Europe in 2016, with Amsterdam being
the first market. Gogoro Smartscooters compete with traditional 125CC scooters and
eScooters.

Visionary Innovation

Gogoro has two primary business activities, manufacturing the Smartscooter and
developing an energy network, thereby becoming a key stakeholder in the creation of a
green ecosystem — the end goal. Frost & Sullivan points out that there are two distinct
needs the company properly addresses through their business — creating sustainable
transportation and sustainable energy.

Gogoro has developed the world’s first Smartscooters, which use lithium- ion battery
packs. The battery packs are developed by Gogoro and are proprietary to the company.
Gogoro eScooter battery packs eliminate the need for the user to charge the batteries;
instead, a network of battery stations (GoStation) are used to swap the batteries with
charged batteries when the user requires one. These charging stations are a part of the
energy grid, which in turn help cities become efficient with respect to the utilization of
energy. Frost and Sullivan recognizes the business opportunities that open up for the
company in the long term due to their unique business model. For instance, partnerships
with renewable energy companies would enable the Gogoro the power their GoStations
using renewable energy source.

Product Impact

Gogoro is the first company to introduce the patented battery swapping technology for
eScooters. Gogoro conceived a battery swap that is done in less than 15 seconds (6
seconds in case of no queue), compared to an average of 2 minutes end users spend at
gas stations as they try to refill their traditional scooters. On the other hand, Frost &
Sullivan research confirms that other competitors offering eScooters involve models that,
on average, take around 1 hour and 40 minutes to recharge their batteries.

Gogoro is the first company to manufacture Smartscooters that are designed around mega
cities. Gogoro’s Smartscooters combine patented technology innovations such as electric
throttle with Saferide™ redundancy, ride-by-wire reverse throttle, aeroframe aluminum
monocoque chassis, storage, keyless start, and auto off activated via kickstand position
sensor to enhance the user experience. The aluminum body of the vehicle enhances its
power to weight ratio to 57.14 (W/kg) compared to competitors 21.05 (W/kg).
Furthermore, by using the various sensors on the vehicle and its connectivity with the
Gogoro Network, the company is able to provide smart features to the vehicle - including
dynamic performance profiling, dynamic regenerative braking, headlight auto on/off/dim,
and turn signal auto reset.

© Frost & Sullivan 2016 4 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

Gogoro Smartscooter and its battery also communicate to the end user’s handheld device,
such as a mobile phone, via Bluetooth technology. This enables the solution to nicely form
a closed ecosystem between the user, vehicle, battery, and the GoStation. Through this,
the user is alerted when the nearest GoStation approaches (depending on the mileage left
in the vehicle). This way, the company is able to properly reduce range anxiety for its
users.

Scalability

The battery pack costs are not accounted for in the Gogoro eScooter price; instead, the
battery is offered on a subscription basis to end users. This enables the company to scale
up its technology in its eScooters without passing on the costs to the user. For instance,
the Smartscooters price in Taipei is $3,000 to $4,000, and the battery subscription costs
between $10/month to $30/month depending on users’ riding range, leveraging the pricing
structure of telecom operators. With this model, for a price as low as $3,000 the user is
able to truly enjoy a technologically advanced scooter with unlimited range. This value
proposition was the main reason that the company was able to outsell the market leader in
Taiwan within the second month of launch.

Gogoro’s cloud network enables the company to properly achieve scalability. Using the
network of GoStations, its eScooters, the batteries, and the end-user movement, Gogoro
analyzes the optimum location for new GoStations based on data collected from Gogoro
Smartscooter traffic.

Application Diversity

When it comes to infrastructure, the application for GoStations goes beyond battery
swapping. A network of GoStations is a part of the city energy grid — something critical to
its success in the European eScooter market. GoStations, as a result, can be seen as nodes
to utilize and improve the efficiency of energy usage in European cities. This is integral to
creating smart cities in the future. For instance, during peak energy consumption,
GoStations are used as a part of the city’s energy grid. For example, as of 2016, Gogoro is
working with municipal bodies in Amsterdam to fully tap the potential of Amsterdam
GoStations before expansion in other European cities.

Customer Acquisition

Frost & Sullivan feels that Gogoro’s unique business model clearly allows it the flexibility to
expand and cater to a wide range of customers. Features such as the digital dashboard
display, exterior styling, head and tail lights, and vehicle sounds are customizable using the
user’s smartphone. This enables the company to make the scooter personal and distinct,
with the various combinations amounting to 3.9 million. Through this, the company is able
to make the Smartscooters a true lifestyle product, which unlike its competitors, extends to
more than a simple tool for commuting. In addition, each Gogoro scooter is equipped with

© Frost & Sullivan 2016 5 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

80 sensors that monitor various user riding styles and help users get the most out of both
their vehicle and the ride itself. Gogoro analyses these data points to enhance vehicle
performance and suit the user, thereby offering the best comfort and convenience - while
being diverse with respect to its offerings.

Technology Licensing

Frost and Sullivan anticipates technology licensing could be one of Gogoro’s revenue
streams. Frost and Sullivan recognizes the potential for licensing the Gogoro battery packs
to other electric scooter manufacturers and companies, and as a result, Gogoro is on the
forefront of creating standardized, superior battery packs. By creating value for the
companies capitalizing on the GoStation network, this also enhances Gogoro’s value
proposition to customers.

Gogoro is creating its own ecosystem of Smartscooters, battery packs, and charging
networks. This ecosystem is expanding the eScooter market as a whole, and the company
is able to provide an impressive proposition to users that outperforms both traditional
scooters and competing eScooters. As such, the battery pack licensing will be integral to
Gogoro’s business model as other companies leverage its technology to grow their sales.

Conclusion

Frost & Sullivan applauds how Gogoro is disrupting the European electric scooter market
with compelling products that enhance the user experience, while improving the overall
ecosystem of cities. The combination of eScooters and energy grids enables the company
to contribute to the creation of sustainable transportation and sustainable energy, while
also becoming a front runner for a unique platform targeting electric and connected
scooters. Adding more value to its product and service offerings not only benefits the
company, but also benefits those that partner with Gogoro. The business model of battery
swapping and providing batteries as a service is certainly unique to the company.

With its strong overall performance, Gogoro has earned the 2016 Frost & Sullivan
Technology Innovation Award.

© Frost & Sullivan 2016 6 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

Significance of Technology Innovation

Ultimately, growth in any organization depends upon finding new ways to excite the
market, and upon maintaining a long-term commitment to innovation. At its core,
technology innovation or any other type of innovation can only be sustained with
leadership in three key areas: understanding demand, nurturing the brand, and
differentiating from the competition.

Understanding Technology Innovation

Technology innovation begins with a spark of creativity that is systematically pursued,
developed, and commercialized. This spark can result from a successful partnership, a
productive in-house innovation group, or the mind of a single individual. Regardless of the
source, the success of any new technology is ultimately determined by its innovativeness
and its impact on the business as a whole.

© Frost & Sullivan 2016 7 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

Key Benchmarking Criteria

For the Technology Innovation Award, Frost & Sullivan analysts independently evaluated
two key factors—Technology Attributes and Future Business Value—according to the
criteria identified below.

Technology Attributes
Criterion 1: Industry Impact
Criterion 2: Product Impact
Criterion 3: Scalability
Criterion 4: Visionary Innovation
Criterion 5: Application Diversity

Future Business Value

Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Technology Licensing
Criterion 4: Brand Loyalty
Criterion 5: Human Capital

Best Practice Award Analysis for Gogoro

Decision Support Scorecard
To support its evaluation of best practices across multiple business performance categories,
Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our
research and consulting teams to objectively analyze performance, according to the key
benchmarking criteria listed in the previous section, and to assign ratings on that basis.
The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings
guidelines are illustrated below.
RATINGS GUIDELINES

The Decision Support Scorecard is organized by Technology Attributes and Future Business
Value (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for
each criteria are provided beneath the scorecard). The research team confirms the
veracity of this weighted scorecard through sensitivity analysis, which confirms that small
changes to the ratings for a specific criterion do not lead to a significant change in the
overall relative rankings of the companies.

© Frost & Sullivan 2016 8 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key players as
Competitor 2 and Competitor 3.

Measurement of 1–10 (1 = poor; 10 = excellent)

Technology Future Average

Technology Innovation Attributes Business Value Rating

Gogoro 9.1 9.5 9.3

Competitor 2 8.7 8.1 8.4

Competitor 3 8.6 8.0 8.3

Technology Attributes
Criterion 1: Industry Impact
Requirement: Technology enables the pursuit of groundbreaking new ideas, contributing to
the betterment of the entire industry

Criterion 2: Product Impact

Requirement: Specific technology helps enhance features and functionality of the entire
product line for the company

Criterion 3: Scalability
Requirement: Technology is scalable, enabling new generations of products over time, with
increasing levels of quality and functionality

Criterion 4: Visionary Innovation

Requirement: Specific new technology represents true innovation based on a deep
understanding of future needs and applications

Criterion 5: Application Diversity

Requirement: New technology serves multiple products, multiple applications, and multiple
user environments

Future Business Value

Criterion 1: Financial Performance
Requirement: High potential for strong financial performance in terms of revenues,
operating margins and other relevant financial metrics

Criterion 2: Customer Acquisition

Requirement: Specific technology enables acquisition of new customers, even as it
enhances value to current customers

© Frost & Sullivan 2016 9 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

Criterion 3: Technology Licensing

Requirement: New technology displays great potential to be licensed across many sectors
and applications, thereby driving incremental revenue streams

Criterion 4: Brand Loyalty

Requirement: New technology enhances the company’s brand, creating and/or nurturing
brand loyalty

Criterion 5: Human Capital

Requirement: Customer impact is enhanced through the leverage of specific technology,
translating into positive impact on employee morale and retention

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard,
analysts can then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
DECISION SUPPORT MATRIX FOR TECHNOLOGY INNOVATION AWARD

High

Gogoro

Competitor 2
Future Business Value

Competitor 3

Low

Low Technology Attributes High

© Frost & Sullivan 2016 10 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

The Intersection between 360-Degree Research and Best

Practices Awards
Research Methodology 360-DEGREE RESEARCH: SEEING ORDER IN
Frost & Sullivan’s 360-degree research THE CHAOS
methodology represents the analytical rigor
of our research process. It offers a 360-
degree-view of industry challenges, trends,
and issues by integrating all 7 of Frost &
Sullivan's research methodologies. Too
often, companies make important growth
decisions based on a narrow understanding
of their environment, leading to errors of
both omission and commission. Successful
growth strategies are founded on a
thorough understanding of market,
technical, economic, financial, customer,
best practices, and demographic analyses.
The integration of these research disciplines
into the 360-degree research methodology
provides an evaluation platform for
benchmarking industry players and for identifying those performing at best-in-class levels.

© Frost & Sullivan 2016 11 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

Best Practices Recognition: 10 Steps to Researching,

Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess
their fit with select best practice criteria. The reputation and integrity of the Awards are
based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

Identify Award recipient Conduct in-depth industry Pipeline of candidates who

Monitor,
candidates from around the research potentially meet all best-
1 target, and
globe Identify emerging sectors practice criteria
screen
Scan multiple geographies

Perform comprehensive, Interview thought leaders Matrix positioning all

Perform 360-degree research on all and industry practitioners candidates’ performance
2 360-degree candidates in the pipeline Assess candidates’ fit with relative to one another
research best-practice criteria
Rank all candidates

Perform in-depth Confirm best-practice criteria Detailed profiles of all

Invite
examination of all candidates Examine eligibility of all ranked candidates
thought
candidates
3 leadership in
Identify any information gaps
best
practices

Initiate Conduct an unbiased Brainstorm ranking options Final prioritization of all

research evaluation of all candidate Invite multiple perspectives eligible candidates and
4 director profiles on candidates’ performance companion best-practice
review Update candidate profiles positioning paper

Assemble Present findings to an expert Share findings Refined list of prioritized

panel of panel of industry thought Strengthen cases for Award candidates
5 industry leaders candidate eligibility
experts Prioritize candidates

Build consensus on Award Hold global team meeting to Final list of eligible Award
Conduct
candidates’ eligibility review all candidates candidates, representing
global
6 industry
Pressure-test fit with criteria success stories worldwide
Confirm inclusion of all
review
eligible candidates

Develop official Award Perform final performance High-quality, accurate, and

Perform consideration materials benchmarking activities creative presentation of
7 quality check
Write nominations nominees’ successes
Perform quality review

Reconnect Finalize the selection of the Review analysis with panel Decision on which company
with panel of best-practice Award recipient Build consensus performs best against all
8 industry Select winner best-practice criteria
experts

Inform Award recipient of Present Award to the CEO Announcement of Award

Award recognition Inspire the organization for and plan for how recipient
Communicate
9 recognition
continued success can use the Award to
Celebrate the recipient’s enhance the brand
performance

Upon licensing, company Coordinate media outreach Widespread awareness of

Take
may share Award news with Design a marketing plan recipient’s Award status
10 strategic
stakeholders and customers Assess Award’s role in future among investors, media
action
strategic planning personnel, and employees

© Frost & Sullivan 2016 12 “We Accelerate Growth”

 BEST PRACTICES RESEARCH

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best in class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation and implementation
of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 31 offices on six continents. To join our Growth Partnership, please visit
http://www.frost.com.

© Frost & Sullivan 2016 13 “We Accelerate Growth”